Some of these inverse gold ETFs employ leverage, which magnifies daily gains and losses. Leveraged and inverse ETFs are volatile and geared to short-term traders — the funds are not designed to be buy-and-hold investments.
ProShares UltraShort Gold lost more than 5% on Monday as gold futures rose and briefly traded over $1,900 an ounce.
SPDR Gold Shares (NYSEArca: GLD) has overtaken SPDR S&P 500 ETF (NYSEArca: SPY) as the largest ETF due to inflows and the climb in gold prices. The gold fund holds $76.7 billion in assets.
ProShares Ultrashort Gold
For more information on gold, visit our gold category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.